Spot gold dropped to test $ 1,127.50 week low as Dollar rallies

By IBT Staff Reporter On 01/20/10 AT 3:42 AM

FXstreet.com (Barcelona) - Gold prices rose on Tuesday's US session from $1,129 to $1.141.75 high on early Asian session, to drop afterwards, as Dollar rallied across the board, and hit Monday's low at $1,127.50 support area, which so far remains intact as XAU/USD quotes around $1,130 at the time of writing.

On a wider perspective, we can see gold moving up and down between $1,127 and $1,145/46 during the current week, with hourly indicators turning bearish, according to Rajoo C, technical analyst at Precise Trader: The Hourly Oscillators are Turning Bearish and the price is Within the MA, so the Bulls have to be CAUTIOUS. Hourly Trend is Sideways Down while 11465 holds and Daily Trend is Sideways while 10965 holds, so expect the price to be Choppy with a Downside bias.